The FHA 203K Renovation Loan

Single Family Residential Homes in Baltimore, Maryland, Harford, Cecil County and All other Areas of Maryland Allowed

The Advantages of an FHA 203K Renovation Loan

• Allows repair/renovation costs to be rolled into the loan

• Major items ARE allowed (Foundation)

• Low down payment (3.5%) and seller can pay up to 6% towards closing costs

• Close before repair/rehab begins

• Only one closing. Money disbursed on a draw basis after closing as construction is completed

• Loan amount can go up to 110% of the "after-improved value" from the appraisal

• Buyer can include optional renovations/upgrades

Examples of Repairs & Renovations

• Repair Foundation

• Replace Roof

• Paint Interior & Exterior

• Install New Flooring

• Remodel Kitchen/Bath

• Upgrade to Central Heat/Air

• Repair Termite or Moisture Damage

• Energy Efficiency Improvements

• Landscaping/Exterior Repairs

• New Built-In Appliances

• And More!

The Process for 203K Renovation Loans in Maryland

The process is simple if you are working with the right loan officer in Maryland

• Client is pre-approved based on income, assets, debt and credit

• Client selects property

• Client meets consultant at property for inspection and feasibility study

• Client gets contractor bid(s) and compares figures with consultant

• Work write-up is prepared by consultant

• Appraisal is performed "as-completed" upon executed contract

• All paperwork is completed and submitted to underwriting

• Underwriter approves the loan

• Approved loan is sent to title company

• Loan closes and rehab account is created

• Funds are disbursed as work is completed and inspected

• Rehab is complete

Items NOT Allowed

• Any luxury item and/or improvement that does not become a permanent part of the subject property is not eligible, including:

• Recreational or luxury improvements, such as pools, hot tubs, whirlpool baths

• Barbecue pits, bath houses, tennis courts, satellite dishes, or tree surgery

• Additions or alterations to support commercial use or to equip or refurbish

• Washers and Dryers

Another great product from Homepath. If you are interested in moving forward with a possible FHA 203K Renovation Loan Robert McArtor with Long and Foster Real Estate, Inc. has made the process EASY! Simply click on the link above and get started on our website!

Welcome to our Mortgage Video Information Center! Learn the difference between and Adjustable and Fixed Mortgage, Why getting pre-approved or pre-qualified for a loan can increase the speed at which you get a loan here in Maryland. Learn about the Mortgage Fine Print and MORE!

Robert McArtor is currently serving the Baltimore County, City, Harford County, Cecil County and Anne Arundel County Areas. If you are looking to Sell your Home in Maryland we can help you.